Corporate

Financial / Legal

Visual Artists Ireland is a charity which complies both with the requirements of the Companies Acts, 1963 to 2013, and also the Statements of Recommended Practice (SORP) as issued by the Charity Commissioners for England and Wales in March 2005.

The Sculptor’s Society of Ireland Ltd. (T/A Visual Artist’s Ireland) is a company registered in Ireland, which was incorporated under the Companies Acts, 1963 to 1986 on the 12th November 1987 and is a company limited by guarantee not having a share capital. The objects of the company are charitable in nature and it has established charitable status (CHY No. 9629).

Appointment of Directors

At each AGM one-third of the directors, or if their number is not three or a multiple of three, then the nearest one-third, shall retire from office. The directors to retire in every year shall be those who have been longest in office since the last election, those to retire shall (unless they otherwise agree amongst themselves) be determined by lot.

A retiring director shall be eligible for re-election provided that no director shall be a director of the company for in excess of ten years, save that a period of three years shall have elapsed since the said director was last a director.

Members

Members of the charitable company guarantee to contribute an amount not exceeding €1 to the assets of the charitable company in the event of a winding up. The number of members at 31st December 2013 was 7.

Risk Review

As a visual artists resource organisation the company has identified that there are areas of risk facing the company regarding public projects and publications. The company is satisfied that adequate policies and procedures are in place to manage any risks that may occur.

Commitment to The Governance Code: Principles of Good Governance

Principle 1.

Leading our organisation. We do this by:

  1. Agreeing our vision, purpose and values and making sure that they remain relevant;
  2. Developing, resourcing, monitoring and evaluating a plan to make sure that our organisation achieves its stated purpose.
  3. Managing, supporting and holding to account staff, volunteers and all who act on behalf of the organisation.

Principle 2.

Exercising control over our organisation. We do this by:

  1. Identifying and complying with all relevant legal and regulatory requirements;
  2. Making sure that there are appropriate internal financial and management controls;
  3. Identifying major risks for our organisation and deciding ways of managing the risks.

Principle 3.

Being transparent and accountable. We do this by:

  1. Identifying those who have a legitimate interest in the work of our organisation (stakeholders) and making sure that there is regular and effective communication with them about our organisation;
  2. Responding to stakeholders’ questions or views about the work of our organisation and how we run it;.
  3. Encouraging and enabling the engagement of those who benefit from our organisation in the planning and decision-making of the organisation.

Principle 4.

Working effectively. We do this by:

  1. Making sure that our governing body, individual board members, committees, staff and volunteers understand their: role, legal duties, and delegated responsibility for decision-making.
  2. Making sure that as a board we exercise our collective responsibility through board meetings that are efficient and effective.
  3. Making sure that there is suitable board recruitment, development and retirement processes in place.

Principle 5.

Behaving with integrity. We do this by:

  1. Being honest, fair and independent;
  2. Understanding, declaring and managing conflicts of interest and conflicts of loyalties;
  3. Protecting and promoting our organisation’s reputation.

We confirm that our organisation is committed to the standards outlined in these principles. We commit to reviewing our organisational practice against the recommended actions for each principle every year.

Adopted: January 2018
Re-Adopted: May 2020

FInancial Maturity Model

Financial governance and leadership

The Board and Executive act collectively by making strategic decisions as a team about the direction of the organisation and its activities. The Board frequently challenge the executive. The Executive receive financial information Monthly. The Board receive financial information Quarterly. They use integrated financial and performance information to collectively challenge senior staff when required. They take action promptly and make strategic decisions about whether or not to engage in areas of activity. Key financial information is regularly communicated to staff and its relevance is clear.

A fit for purpose system of internal control is in place supported by governance arrangements which ensure that controls are implemented and exposure to risk is minimised. The importance of these controls is communicated to staff, who comply with the processes and procedures. Adherence to the controls is monitored and non-compliance is acted upon and addressed. The systems are reviewed and updated on a planned cycle covering three or four years, or more frequently if prompted by significant events. The risk register considers a wide range of internal and external risks to which the organisation is exposed. It is reviewed bi-annually as a minimum.

Finance trustees are qualified professionals, or have industry experience required to deliver their fiduciary duties The finance team are trained professionals. Further training is in place for staff within the finance team which meets basic needs. Project management training for all staff includes cost analysis and budgeting

Financial planning

A well aligned planning process translates the business strategy into a simple story about the organisation’s objectives and the role that each part of the organisation needs to play. The Business strategy is reviewed annually, and an annual fully costed programme plan is prepared by the CEO for presentation to the Trustees. The signed off project plans are then reported upon at weekly staff meetings, with monthly financial reports prepared by finance and the CEO. The status and finances of the programme plan are reported upon quarterly to the Trustees.

A robust system which allows for strategic financial planning, programme plan reporting and project reporting is in place, supported by SAGE, and financial spreadsheets prepared and updated by the CEO. These are stored securely in a central location. Financial planning is aligned with existing commitments and available resources.

• Financial resources are aligned with strategic objectives.
• A bespoke online budgeting system is in place.
• A streamlined process in place.
• Budgets are compiled by finance staff, given available resources, in consultation with budget managers.

Financial planning covers all activities and areas of the business. Funding for new initiatives or activities is determined by existing commitments and available resources. Priority given to strategic objectives. New investments and grant programmes approval and monitoring controls in place.

Financial information for decision making

Budget managers and the Board understand cost drivers for client supports and for operational activity.

Benchmarks for client support costs are not readily available however, value for money is calculated at time of investment and based on historical data.

Procurement rules (designed to achieve best value for money) are adhered to for operational costs. Costs not subject to procurement are reviewed annually during supplier contract negotiations, or on a needs basis during the lifetime of a project.

Operational costs are grouped into categories that allow the agency to take a strategic view of procurement and facilitates going to tender for the most economically advantageous supplier.

The Executive, Board, Finance function and Investment services understand the sources of income and the importance of self generating and collecting own resource income.

Financial monitoring, forecasting and performance

A budget is set and approved by the Board at start of year after the estimates process, and reviewed and adjusted twice during the year based on AC and ACNI Funding.

Financial (budget and actual) reports are available to budget managers online at all times.

Tailored financial reports available to Board and various committees within 7 working days of period end.

Board receives financial reports and key metrics or key performance indicators quarterly.

The company auditor is invited to attend all board meetings to bring clarity and independent expertise to any financial matters under consideration.

The level of detail in monthly financial reports is cascaded appropriately depending on the user (e.g. Board, Executive Committee, etc.). Authorised users can access individual tailored and standard financial reports through the Budgeting and Reporting system on a 24/7 basis and can drill to transactional level by double clicking on a number on the report. Reports can be available within 3 days following the period end. The external financial statements for audit are available within 1 month of year end.